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How to make compliance training engaging and audits impactful

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Training and audits are two pillars of compliance. However, many businesses struggle to engage with these elements in meaningful ways. At Neopay, we’ve identified several areas where misunderstandings commonly arise. Here’s a guide to address these areas and offer practical solutions to make training and auditing more effective, engaging, and impactful.

Making training engaging and meaningful

Let’s be honest—sitting through three hours of compliance training can feel overwhelming. But compliance training doesn’t have to be monotonous. A key strategy is to include practical examples that show how regulations impact day-to-day activities. For instance, demonstrating how an onboarding analyst verifies documentation brings theory to life, helping attendees see the relevance of what they’re learning.

To foster engagement, consider incorporating interactive elements, such as quizzes or activities. These not only break up long sessions but also provide opportunities for participants to actively apply their knowledge, ensuring better retention.

Moving beyond ‘box-ticking’ assessments

While assessments are an essential part of training, they should not become a formality. To ensure that they reflect real understanding, include open-ended questions alongside the typical multiple-choice formats. Open questions encourage participants to reflect on and articulate their grasp of key topics, allowing a deeper assessment of how well they understood the material. Multiple-choice questions, on the other hand, provide a quicker check of specific knowledge.

The value of face-to-face training

Some topics, like Financial Crime, are just too complex to be effectively communicated through online presentations. This is an area where face-to-face training is invaluable. In-person sessions allow for in-depth discussions, direct Q&A, and the real-time clarification of any grey areas, ensuring participants stay focused and engaged.

Building a well-rounded training program

A successful compliance training program should be multi-dimensional. Here are a few components to consider:

  • Face-to-Face (F2F) sessions led by your MLRO or external specialists like Neopay.
  • Regular briefings on regulatory, industry, and business updates.
  • A Knowledge Hub where employees can access key resources.
  • Daily quizzes (e.g., a question delivered by email).
  • Online training modules for targeted areas.
  • Participation in industry forums like FCA, PSR, PA, and PIF events, where your team can stay abreast of professional developments.

Understanding different types of audits

Not all audits are created equal, and it’s important to select the right one for your business needs. If you’re looking for a holistic review of your operations to match regulatory standards, a compliance and regulatory audit is the best choice. This provides a high-level assessment of your compliance status based on documentation and interviews with key personnel.

If you have specific areas of concern, such as financial crime, complaints handling, or safeguarding, consider a targeted audit. These are more detailed and focus on the specific systems and controls in place, often delivered in three stages: a documentation review, interviews with relevant personnel, and file testing.

Audit vs. remediation: understanding the difference

An audit assesses your current compliance with legal and regulatory obligations, highlighting any deficiencies or gaps. However, remediation is an internal process where your compliance team addresses those gaps. This typically involves developing an action plan and implementing changes to meet compliance standards. While external auditors can return for a follow-up audit to assess the success of the remediation, the remediation itself is your responsibility.

Common mistakes in sample testing

When it comes to sample testing during audits, it’s critical to provide the right amount of information. Offering too little can lead to follow-up questions or negative findings, while providing too much can overwhelm the auditor and similarly result in confusion or delays.

The key is to present the sample in a structured way that an external party unfamiliar with your processes can easily follow. For example, for a due diligence file, include:

  • A copy of the application form or sign-up journey.
  • Screenshots from your CRM showing key information.
  • Verification reports from third-party vendors.
  • Copies of verification documents (passport, bank statement, etc.).
  • Screening results.
  • Records of customer risk assessments and periodic monitoring.

Providing a clear and coherent picture ensures a smooth audit process.

The importance of interviews in audits

While documentation is crucial, it often doesn’t capture the full picture. Interviews are an essential part of the audit process because they allow auditors to gain deeper insights into how things are actually done, beyond what’s on paper. Interviews can also uncover any discrepancies between documented processes and real-world practices.

Selecting the right interviewees is critical. The MLRO, Head of Compliance, and Senior Management Team members are typical participants, but subject-matter experts, such as an onboarding analyst or transaction monitoring staff, should also be included to provide detailed insights into specific processes.

How Neopay can help

At Neopay, we understand that compliance can seem daunting, but our expertise can help your business stay ahead of regulatory requirements and avoid costly mistakes. Here’s how we support your training and audit needs:

  • Customised training programs: We design and deliver tailored training that not only meets regulatory requirements but also engages your team through practical examples and interactive sessions. Whether you need face-to-face sessions or online modules, we ensure that your staff can grasp and apply compliance principles in their day-to-day work.
  • Meaningful assessments: Our training programs are paired with carefully designed assessments that go beyond box-ticking. We incorporate open-ended and multiple-choice questions to evaluate real understanding and identify any areas that need further attention.
  • Comprehensive audits: Neopay offers both compliance and regulatory audits as well as targeted audits focused on specific areas such as financial crime, complaints handling, and safeguarding. Our auditors bring industry expertise and a practical understanding of the challenges businesses face, ensuring thorough, insightful reviews.
  • Guidance on remediation: If gaps or deficiencies are identified in an audit, we can help guide your compliance team through the remediation process. We work with you to design an action plan that addresses the issues and prepares you for future audits.
  • Audit readiness: Preparing for an audit can be stressful. Neopay helps you gather, structure, and present the right documentation for smooth and efficient sample testing. We ensure that you are fully prepared, from documentation to interview participants.

With our hands-on approach, we ensure that your compliance training is not only informative but impactful, and that your audits deliver actionable insights for continuous improvement. Contact our team now to find out how we can support your business.

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